Abstract:
This paper aims to focus on inclusive growth and its impact on multidimensional poverty and inequality in Iran's provinces on the basis of social mobility index. The results suggest, that although the multi-dimensional poverty has decreased, participation of active labor force has a decisive role in inclusive growth and reduction of absolute multi-dimensional poverty of the provinces. But labor participation has been accompanied by inequality of income, which indicates that the opportunity for economic growth has been unevenly distributed, as higher income deciles have more benefits. Income inequality has moderated the positive and significant effect of GDP growth on its inclusiveness. Inflation also has a negative and significant effect on the inclusive growth of the provinces. The research findings indicate that the economic and financial policies, including the ratio of bank credit to GDP and government social expenditures, have a positive and significant effect on the acceleration of inclusive growth and have been able to generate inclusive, albeit unsustainable growth in the provinces. This inclusive growth has led to a reduction in poverty and inequality. However because of its volatility and instability, it has no significant impact on poverty and inequality and did not directly reduce poverty and inequality in the provinces.
Machine summary:
"The research findings indicate that the economic and financial policies, including the ratio of bank credit to GDP and government social expenditures, have a positive and significant effect on the acceleration of inclusive growth and have been able to generate inclusive, albeit unsustainable growth in the provinces.
(View the image of this page): The index of social mobility in the province1 : The fixed effects of the cross-section of provinces GDP: real GDP of the provinces I: Theil's Inequality Index (alternative criterion for equality of income for households income deciles per Province) CON: active labor force Participation per province CTG: ratio of Bank Credit to GDP per province SE: real social expenditures per province P: consumer price index 1 The relative changes in the social mobility index of provinces (d ) are the inclusive growth of the province.
Dynamic estimation in this study is consistent with the findings of Sadeghi (2013), which also uses dynamic generalized moment method, and indicate that GDP growth has a negative and significant effect on the growth of inequality in the provinces, which is consistent with Sun and Kakwani (2008).
Therefore, according to the results of the growth model of inequality, by estimating the dynamic (in this study, the generalized system moment method), as in the stationary estimation (in this study, the fixed effects method, taking into account heterogeneity and autocorrelation), while inclusive growth has the ability to reduce inequality, but during the course of the study, the implementation of macroeconomic policies, including government social expenditures, the ratio of bank credits to GDP, active labor participation, has not diminished inequality."